Accounting for Lease Concessions Related to the Effects of the COVID-19 Pandemic
Topic 842 and Topic 840 of the Financial Accounting Standards Board (FASB): The FASB staff has been informed that because of the business disruptions and challenges severely affecting the global economy caused by the COVID-19 pandemic, many lessors are, or will be, providing lease concessions to lessees for a significant number of lease contracts. Stakeholders have noted that while the concessions could vary in form, payment forgiveness and deferral of payments are expected to be the most common types of concessions granted.
If you have any questions or need assistance with the accounting for deferrals, please email info@actcpas.com , or contact your ACT representative.